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TMI Blog2018 (2) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... n 14.09.2007 an agreement was executed between the petitioner and the respondent for trading/procurement /sale of mustard and soya seeds and a Subsequent Agreement dated 10.09.2008 was executed between the petitioner and the respondent also for trading/procurement /sale of mustard and soya seeds. On 04.01.2011 an amendment to the Subsequent Agreement was made for extending the period of the Agreement; b) On 02.09.2011 the Assistant Commercial Taxe Officer, Anti- Evasion, Rajasthan Ward 3, Jaipur conducted a survey at petitioner's Jaipur branch regarding transactions between the petitioners and the respondent and served a notice dated 11.11.2011 to the petitioner for recovery of VAT tax; c) On 03.01.2012 the petitioner were constrained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that and the respondent was under a strict covenant as per the Agreement to indemnify the petitioners against any liability; f) on 16.05.2016 the respondent, in view of the Clause 42 of the Agreement for settlement of disputes through arbitration, submitted an application dated 16.05.2016 before the Indian Council of Arbitration for redressal of the dispute; g) on the other hand the Order dated 20.03.2015 was assailed by the Tax Department before the High Court of Rajasthan in S.B. Sales Tax (VAT) in Revision Petitions No.20/2015 and 21/2015. By Order dated 01.09.2016, High Court of Rajasthan dismissed the aforesaid petitions upholding the order passed by Dy. Commissioner Appeals and the order passed by Rajasthan Tax Board; h) on 06.04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifications etc, of the material cost of expenses of whatsoever nature caused to MMTC on account of KSOL's acts/omissions/default and/or non-fulfillment of terms and conditions of this agreement. KSOL shall also indemnify MMTC from any/all claims under the contract as well as agro commodities trading in NCDEX. 27. Any statutory charges and applicable duties/levies/taxes such as VAT/CST/ST/ Mandi Tax etc. at any point of time for transaction under this agreement shall be to the account of KSOL. Further all expenses like insurance, storage charges, NCDEX charges and other out of pocket expenses, if any, shall be to the account of KSOL. 31. If any litigation arises out of quality/quantity complaint and or failure to deliver the material a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account. 9. The Claimant thereafter vide its various letters dated 06.01.2012, 16.07.2012, 17.08.2012, 31.08.2012, 13.12.2012, 31.01.2013, 21.08.2014, 03.02.2015, 24.03.2015 requested the Respondent to refund the excess amount to the bank account of the Claimant withheld by the Respondent The Claimant even requested the Hon'ble Minister of Commerce, Ministry of Commerce and Industry, to intervene in the said matter for release of excess amount (which as per the Claimant was Rs. 2.59 crores) withheld by the Respondent since January 2012." 5. The learned counsel for the petitioner submits since the respondent was liable indemnify petitioner against any liability under the agreement viz. including a tax liability, hence they withheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in documents relating to the transaction and hence for fault of the respondent, the petitioners have to write various letters to release such amount which was not released and hence the interest on late payment of such dues cannot be denied. Moreso the counsel of the petitioner has not shown me any term of the contract which enable the respondent to retain any amount in anticipation/apprehension of any liability, whatsoever, including tax liability.
8. Thus there is no infirmity in the award of the learned arbitral tribunal in granting an interest on Rs. 1,88,08,233/- to the respondent herein. The award is fully justified and petition being devoid of merit is liable to be rejected and hence rejected. X X X X Extracts X X X X X X X X Extracts X X X X
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